Professional Documents
Culture Documents
Country Study
Nairobi, 21 April 2010
Content
1 Market Environment for Green Businesses ......................................................................................................................... 1
1.1 Country background......................................................................................................................................................... 1
1.1.1 Macroeconomic Environment ............................................................................................................................... 1
1.1.2 Financial Sector .................................................................................................................................................... 1
1.1.3 Business Environment........................................................................................................................................... 1
1.2 Energy Sector Overview ................................................................................................................................................... 2
1.2.1 Primary Energy Supply Balance .......................................................................................................................... 2
1.2.2 Final Energy Consumption Balance ..................................................................................................................... 2
1.3 Potential for Renewable Energy and Energy Efficiency ............................................................................................... 5
1.3.1 Renewable Energy Sector ..................................................................................................................................... 5
1.3.2 Energy Efficiency Sector....................................................................................................................................... 6
1.4 Institutional Framework................................................................................................................................................... 7
1.4.1 Institutions ............................................................................................................................................................ 7
1.4.2 Industry Bodies ................................................................................................................................................... 10
1.4.3 Laws and Codes .................................................................................................................................................. 10
1.4.4 Guidelines/Energy Policy .................................................................................................................................... 13
7% Woodfuel
16%
Hydro
6%
Imported Crude
Oil for Refinery
72%
Imported Crude
for Electricity
Households
Com&Service
Biomass
Transport
Petroleum
Agric & Fish Electricity
Industry
3 World Economic Forum (2009), The Global Competitiveness Report 2009 2010; World Bank (2009), Doing Business 2010; Transparency
International (2009), Corruption Perception Index.
Africa Green Business Market Assessment Ghana Page 2
6.4%
17.1%
Biomass
Petroleum
Electricity
76.1%
The electricity sector accounts for about 6.4% of the total energy consumed. Currently, the country has available capac-
ity of 2,011 MW as broken down in Table 1. The in-country generation of power amounts to 8,323 GWh on annual
average and is dominated by hydro electric sources. Due to falling water levels, thermal power has become more
important as source of electricity generation, especially as back-up during peak hours from 7 10 p.m., with shares
for thermal power increasing from 8.5% in 2000 to 25.6% in 2008 in total electricity generation (from 613 GWh to
2,128 GWh).
Apart from in-country generation, 275 GWh of thermal power was imported from Cote dIvoire in 2008 to supplement
domestic demand which is growing at 9% per annum as a result of population growth, rural electrification and indus-
trial expansion. The industrial sector is the largest consumer of electricity (37% in 2008), followed by the residential
sector (28%). The non-residential sector accounted for 11% of total electricity consumption. The remaining 24% can be
attributed to distribution and transmission losses.
In 2004, about 54% of the population had access to electricity supply, the third highest rate in Sub-Saharan Africa
after Mauritius and South Africa. Currently, experts estimate the national electrification rate at 64%, more than doubling
from 28% in 1989 when the National Electrification Scheme (NES) was launched. The Deputy Minister in an official
address in February 2010 confirmed that currently 65% of the population had access to the electricity grid. 6 Neverthe-
less, there are huge disparities between urban and rural areas (78.8% and 23.8% respectively). Per capita electricity
consumption was estimated to be 272 kWh per year in 2008, which is below the Sub-Saharan weighted average of
7 The 2007 energy crisis necessitated a shift from hydro to a more costly thermal-power generation at a time of rising crude oil prices. In the
circumstance, the government introduced subsidies to enable consumers to operate a cost-recovery pricing mechanism during the period of acute
power shortages. As a result, petroleum prices in Ghana are currently the cheapest in the West African region, providing huge incentives for
smuggling and causing shortages in the country. Studies are underway to assess the impact of re-imposition of taxes on petroleum products on
household activities and economic growth.
8 ESMAP, 2006; Energy Commission, 2009.
9 A wind energy system usually needs an average wind speed of at least 5 metres per second to be practical. Typical annual average wind speed
1.4.1 Institutions
The energy system in Ghana is basically managed by the public sector.
Ministry of Mines and Energy (MOME)
The Ministry of Mines and Energy is responsible for formulating and implementing energy and electricity policies. It also
supervises the operations of Ghana National Petroleum Corporation, the Tema Oil Refinery, the Volta River Authority, the
Electricity Company, and has oversight responsibility over the Energy Commission. In order to further develop the solar
and renewable energy programmes, the Ministry established on the Renewable Energy Services Project (RESPRO) with
funding support from the Global Environment Fund through the UNDP.
The Renewable Energy Division is responsible for developing and elaborating national policies and strategies for all
renewable resources, technologies, demand and supply side management and generation: solar PV systems for both
stand-alone and grid connected; wind energy resource assessment and generation, small hydro development, bio-
mass/biofuel and woodfuel resource assessment, development and generation.
Ministry of Environment, Science and Technology (MEST)
The Ministry of Environment, Science and Technology (MEST) exists to establish a strong national scientific and techno-
logical base for accelerated sustainable development of the country. By September 2010, MEST in collaboration with an
international consultant will have developed Ghanas Low Carbon Growth Strategy, which strives to ensure the supply of
sustainable, affordable, safe and reliable energy for domestic and industrial use.
The draft strategy paper encompasses (1) promotion of RE research and development programmes, including to up-grade
hydropower energy production technology, sensitization and dissemination of energy technology in rural electrification
facilitating ownership; (2) facilitation of efforts to acquire and adapt sustainable safe and economical energy technolo-
gies; (3) promote public support for energy conservation; (4) encourage private and community investment, (5) exploit
the utilization of nuclear energy resources for domestic and industrial use, and (8) develop an integrated petrochemical
industry to respond to the oil and gas industry. Following this document, the Government will establish a climate fund
which would involve the creation of a gender fund to assist women and children to support mitigation and adaptation
Regulating Agencies
The Energy Commission of Ghana is the primary regulator for the energy sector in Ghana setting the technical stan-
dards for the electricity and petroleum sectors (in collaboration with the National Petroleum Tender Board). The Energy
Commission also sets the standards for the export of charcoal, licenses RE businesses and gives out permits for import-
ing of RE components. The Commission also advises the Government on energy policy and strategy, including the RE
draft bill that will provide a level playing field for potential developers of RE energy production and climate change
mitigation in Ghana.
The Commission is dedicated to the exploitation of Ghanas renewable energy resources for which it utilizes funding
from the Energy Fund (Act No. 541). The Fund raises about USD 500,000 a year from levying petroleum products,
which is however insufficient to support large-scale RE development, as stipulated its Strategic National Energy Plan
2006 2020 (SNEP) which targets 10% of RE sources to be in the energy mix by 2020 (excluding biomass and large
hydropower). The Commission is also involved in indicative planning of energy and electricity system expansion, and
licensing of energy sector operators. The Public Utilities Regulatory Commission (PURC), which was established in 1997,
is the prime body for monitoring price, setting tariffs, ensuring quality of service and framing customer service regula-
tions.
Electricity Generation, Transmission and Distribution
The electricity generation and transmission functions lie with the publicly owned Volta River Authority (VRA), while
electricity distribution in the Southern part of the country is the responsibility of the Electricity Company of Ghana
(ECG), supplying 1.72 million non/residential and 11,136 industrial customers as of 2008. The Northern Electricity
Department (NED) under the VRA is responsible for distribution in northern Ghana having 278,000 non/residential and
31 industrial customers. In order to decentralize and open the power sector to Independent Power Producers, institu-
tional reforms of existing power utilities were undertaken in 1998. The newly established Ghana Grid Company (GRIDCO)
will replace the transmission department of the VRA and acts as broker between IPPs and VRA. The first private partner
to enter the market, CMS of Michigan, bought 51% in a joint venture with VRA to set up the 220 MW Aboadze ther-
mal power plant.
Other Agencies
The Ghana Energy Foundation, established in 1997, is a not-for-profit public private partnership devoted to promoting
the sustainable development and efficient consumption of energy in Ghana by offering EE and RE solutions to residential,
industrial and commercial energy consumers. The Executive Council consists of the Association of Ghana Industries (AGI),
Private Enterprise Foundation (PEF), Ghana National Chamber of Commerce & Industry (GNCCI), Ghana Chamber of
Mines (GCM), Volta River Authority (VRA), Electricity Company of Ghana (ECG) and Volta Aluminium Company Ltd
(VALCO).
Its activities include energy audits and energy management strategies, power and factor correction, electrical load
management, heat recovery, monitoring and targeting energy management, tariff analysis, refrigeration and air condi-
tioning analysis, outreach programmes to educate the public, demonstration and promotion of RE and EE technologies.
The Foundation has used formal and informal communication with policy makers and energy sector stakeholders to raise
electricity tariffs to economic levels and successfully advocated for a reduction on import tariffs for energy efficient
products and renewable technologies. As early as 1999, it organized the first National Forum on Energy Efficiency
Technologies and has held several exhibitions for energy efficiency technologies, round table meetings and workshops for
local banks and international financial entities.
The Environmental Protection Agency (EPA) provides the framework legislation for environmental assessments in Ghana.
According to Act 1994, EPA is mandated to advise the Minister of Energy on formulating environmental policies and to
make recommendations for the protection of the environment, to coordinate activities of domestic environmental bodies
and with international agencies, to develop a comprehensive database on environment related issues and environmental
protection, and to conduct training seminars for public sensitisation.
Africa Green Business Market Assessment Ghana Page 8
The Kumasi Institute for Technology and Environment (KITE), has gained international acclaim for its innovative and
effective RE and EE interventions. Since its inception in 1996, KITE has supported policy research, knowledge manage-
ment, the development of entrepreneurial skills and empowerment of indigenous entrepreneurs in order to help provid-
ing modern energy services in rural and peri-urban areas in Ghana and the ECOWAS region. In partnership with local
and international organizations, the institute has attracted more than USD 15 million in development assistance, exe-
cuted 40 projects, established more than 100 energy businesses, organized more than 100 capacity building workshops,
and has built the capacities of about 1,000,000 entrepreneurs and stakeholders. KITE has had impact on over 100
communities, and has directly served around 2,000,000 people. Table 2 summarizes KITEs ongoing activities.
Table 2: Ongoing KITE projects
Rural Energy Supply and Sustainable production and utilization of Identification and deployment of new
Utilisation Program energy, focusing on alternative bio- technology options.
(RESUP) energy feedstock and improved conver- Finance and capacity building to formal
sion technologies and informal sector
Energy and Productivity Improve productivity levels of SMEs in Promotion and introduction of modern
Program (EPP) rural and peri-urban areas in Ghana energy technology and services in SMEs.
Enterprise development services, facilita-
tion of funding and technical support
Energy and Environment Facilitate knowledge sharing and tech- Promote and demonstrate the sustainable
Program (EEP) nology transfer use of RE and non-renewable energies
Clean Energy and Tech- Development of viable energy business Technical and financial support to viable
nology Investment Pro- opportunities into commercial enterprises energy businesses
gram (CETIP) Start-up capital
Knowledge Management - Keep stakeholders abreast with new - Channelling information through various
Program (KMP) developments in energy sectors and formats and means of communication
global industrial/technological trends and
funding opportunities
Source: KITE, 2010
The Energy Centre at Kwame Nkrumah University of Science and Technology (KNUST) represents another leading agency
in the development of RE and EE projects, including the Renewable Energy Education Project (REEP) supported by the
European Unions Africa, Caribbean and Pacific (EUACP) Secretariat, the Biofuel SME Project supported by Trust Africa (a
joint initiative of Ford Foundation and the International Development Research Centre (IDRC) of Canada), and the
Renewable Energy Enterprise Development (REED) project. KNUST also hosts the Solar Laboratory at Mechanical Engineer-
ing Department and Agricultural Engineering Department. Other vital research institutes in the fields of biofuels and
deforestation are the Council for Scientific and Industrial Research (CSIR) which coordinates scientific R&D at eight
agricultural research institutes, and the Forestry Research Institute of Ghana (FORIG).
The GIS-based Energy Access Project, supported with a EUR 180,000 grant from EUEI-PDF, contributes towards the
effective implementation of policies and plans for achieving energy access targets through the use of a geographic
information system (GIS) to collate and analyze national level data and provide timely information for policymaking
purposes in Ghana. The project is meant to be a pilot project which will be replicated in ECOWAS countries provided
continued support from UNDP. An RE Master programme is in pipeline.
The Lighting Africa National Advisory Committee (LANAC) was set up in August 2009 in Accra, and comprises consultants
specializing in the off-grid (solar) lighting markets in Ghana. IFC contracted KITE to provide technical support for setting
up the Committee in Ghana and Kenya. LANAC provides programme staff on programmatic and strategic issues and
acts as liaison for potential investors and customers informing on financing sources, consumer protection and targeting
strategic markets.
12
MoE, 2010, http://www.energymin.gov.gh/download/address.pdf.
13
Since PURC lacks the necessary in-house knowledge on RE, the feed-in tariff scheme is designed by an external consultant.
Africa Green Business Market Assessment Ghana Page 11
Control and management of biofuel, and woodfuel, for the establishment of a scheme for the creation, trad-
ing and extinguishing of RE certificates.
As part of the GEDAP programme, the Government has committed itself to submit a renewable energy bill to Parlia-
ment by October 2010 (revised from December 2008 and December 2009). The law is now with the Minister of Energy.
According to experts, the draft bill is likely to be presented to the Cabinet by March 2010, and enter Parliament before
July 2010. Interview partners have acknowledged not only the enactment, but also the implementation of the law as
critical.
The Law also aims to establish the Ghana Renewable Energy Fund (GREENfund) that will be managed by the Energy
Commission which is preparing the detailed concept and currently discussing the specific structure. The Funds objective
is to promote the grid interactive renewable electricity by means of generation based incentives, feed-in-tariffs and
capital subsidies. In addition, the Fund aims to support scientific and technological research into RE, as well as re-
search into the establishment of RE standards and programmes to adopt international best practices.
The Fund, through inter alia subsidies and equity participation, will mainly invest in the production of RE equipment,
the development of large-scale solar and wind projects and grid-connected RE systems drawing on feed-in tariffs coming
with the new law. The tax-exempted Fund will be sourced by (1) the premium payable from bulk customers who do
not comply with purchasing a certain percentage of their electricity from RE as set by PURC, (2) grants, donations and
other voluntary contributions to the Fund, (3) any person, donor and international organization, (4) moneys specifically
earmarked for the Fund, (5) internally generated funds obtained from RE related activities, (6) moneys provided by
Parliament, (7) moneys that the Minister with the approval of Parliament may determine, and (8) other moneys or
property that may in any manner become lawfully payable to and vested in the Board of the Energy Commission for
the benefit of the Fund.
Charcoal Production and Distribution
Compared to electricity and the petroleum sub-sectors, relatively little investment is made to formalize this traditional
energy sub-sector. The sector operates as an informal sector lacking human capacity at all levels of governance to
develop, implement and monitor policies on wood fuels and with poor institutional linkages among the various agencies
that should be devoted to manage the traditional fuel and ensure a sustainable woodfuel industry.
The only regulations in place apply to charcoal export that has officially been stopped with regulations and an adminis-
trative order effected by the Energy Commission. Only charcoal from wood wastes and owned plantations is permitted.
There is neither a price regulation authority for wood fuels nor an association of suppliers responsible for pricing. As
part of the RE draft bill, the Energy Commission will in consultation with the Forestry Commission develop a reforesta-
tion programme to sustain woodfuel production.
Biofuel
In November, 2005, the Energy Commission completed a National Bio-fuels Policy Draft, which was subsequently for-
warded to the Cabinet. It still has not been presented to Parliament as a bill to pass into law. Portions of it were,
however, incorporated in the 2008 Budget Statement, including fiscal incentives to be provided for investments in the
bio-fuel industry such as tax-holidays of up to five years and a reduction of corporate tax from 25 to 20 percent for
businesses directly related to the development of the bio-fuel industry.
As part of the RE draft bill, biofuels will be designated as petroleum product in accordance with the National Petroleum
Act, 2005 (Act 691). With enactment of the RE law by the end of 2010, the National Petroleum Authority will be
responsible for pricing biofuel. The proportion of biofuel in biofuel blend will be determined from time to time by the
National Petroleum Authority in consultation with the Energy Commission.
International Treaties
Ghana signed the United Nations Framework for Climate Change in 1992 and ratified it in 1995. It subsequently ac-
ceded to the Kyoto Protocol in 2002 and has been participating in sub-regional, regional and international development.
Energy Efficiency
14 State of the Nation Address by the President of Ghana, John Evans Atta Mills, February 19, 2010.
15 Despite tariffs below production costs, both the President in his Address to the Nation in February 2010, and the Minister of Finance in his
Budget Statement for the 2010 Fiscal Year in November 2010, argue for lowering energy tariffs by increasing efficiency of energy production (e.g.
through developing gas turbines).
Africa Green Business Market Assessment Ghana Page 13
Aboadze, and the 125 MW Osagyefo Power Barge. The 200 MW Sunon Asogli Kpone Power Plant, which is managed by
the Shenzhen Energy Group and partially financed by the China-Africa Development Fund, will provide additional 360
MW after completion of the second construction phase. The USD 600 million project is near completion and will start
generating power soon provided that Nigerian gas is being delivered through the West African Gas Pipeline. In 2009,
the 126 MW Tema Thermal 1 Power Project (TT1PP) which is now fully operational was commissioned. Interventions
undertaken also include the construction of the 400 MW Bui Dam hydro power plant and completion of the Regional
Capitals Street Lighting projects for selected streets in Accra, Tema, Kumasi, Takoradi, Ho, Sunyani, Bolgatanga and Wa.
To reform and modernize the power sub-sector, MoE has estimated investments requirements at USD 3 billion (and at
USD 10 billion for the energy sector as a whole). 16 This figure includes USD 1 billion for generation development, USD
500 million for transmission infrastructure development, USD 1 billion for distribution infrastructure development, and
USD 500 million for rural electrification and RE projects (solar PV, wind and mini hydro).
For the 2010 Fiscal Year, the Government is focusing on upgrading the transmission and distribution systems while
scaling up rural electrification to ensure increasing access to electricity by household and industry. Against the back-
ground of several power crisis and rolling blackouts in the recent past, the Government is strongly interested in increas-
ing electricity access, supply and reliability, in order to meet the projected rising demand for power and mitigate
impediments to economic growth. As a main objective of its Energy for Growth Strategy, the government intends to
assure an electrification rate of 75% by 2015 and universal access and choice of modern forms of energy to the whole
population by 2020. Under the National Electrification Scheme (NES), grid connections will be expanded to around 950
more communities and electrification to a further 200 communities (MoE, 2009). 17 Projects to be implemented will
include the extension of electricity supply to about 800 selected communities under a Suppliers Credit facility of USD
170 million by China International Water & Electric Corporation (CWE). An additional 1,200 selected communities will
be financed under an arrangement by the US EXIM Bank, 200 more communities will be connected under SHEP-4. In
addition, ECOWAS Bank for Investment and Development (EBID) will contribute to finance the connection of 106 se-
lected communities in the Ashanti and Brong-Ahafo Regions, while BNP Paribas will partially finance the connection of
79 communities to the national grid in the Ashanti and Eastern Regions. 18 A Rural Electrification Agency is going to be
established that will be devoted to coordinate all rural electrification programmes and to provide cost effective rural
electrification options including renewable energy throughout the country, also considering off-grid solutions for potential
customers that are located too far from the grid for connection to be economically viable. The responsible consultant
has completed the work; however, the immediate establishment of the REA could be slowed down due to the fact that
it will be in charge of grid extension, thus reducing political decision-making influence on grid extension.
The long-term strategy of the Government is the regional integration of Ghanas energy system through two multina-
tional energy projects: the West Africa Gas Pipeline (WAGP) and the West Africa Power Pool (WAPP), which are both
financed by the World Bank. The WAGP will diversify Ghanas hydro-based power system by bringing lower cost Nige-
rian gas through Benin and Togo to Ghana. The ongoing WAPP will enhance cross-border power trade in West Africa
by strengthening interconnection lines from Cte dIvoire to Benin along the Ghanaian coast, and by establishing inter-
connection lines within Ghana to transfer thermal power northwards to the Sahel countries. Although construction of the
gas pipeline finished over one year ago, and tests were concluded one year ago, the IPP are still waiting for Nigerian
gas to be delivered (World Bank, 2009).
Other key elements of the Governments agenda are to add capacity at the transmission and distribution levels, open
up the sector to independent power producers, pursue regional cooperation projects, strengthen the regulatory institu-
tions, implement power sector reforms and reduce costs of electricity production to achieve lower tariffs. The Ministry is
also working to improve the long term financial viability of the three power utilities. This plan will also affect full
for solar), JICA sponsored West Akim Electrification Project (USD 7.6 million) and Upper Denkyira Electrification Project (USD 4.6 million), Wel-
dy/Lamont Associates (USD 350 million), Bilpower Limited/Chrispod Limited (USD 30 million), and Eltel Networks Corporation (EUR 10 million).
Africa Green Business Market Assessment Ghana Page 14
transfer of the national transmission grid assets from VRA to GRIDCO, and protect assets and liabilities associated with
the government sponsored Tema and Kpone thermal power projects. It is estimated that, about USD 9.0 billion is
required in the next five years to finance the numerous initiatives in the energy sector, of which oil and gas activities
alone require over USD 5.5 billion and USD 400 million for thermal power plants.
Renewable Energy
The evolution of national policies relating to renewables in Ghana can be traced back to 1983 when the National
Energy Board (NEB) was established. Within the last decade, renewable energy has come to play a more significant role
in the National Energy Plan. The Strategic National Energy Plan (SNEP), which was developed by the Energy Commission
for the period from 2006 2020, identifies the optimal path for the development, use and efficient management of
the country's energy resources required for economic development. The plan seeks to increase the use of RE to 10% of
the country's energy mix by 2020 and achieve 30% penetration of rural electrification via renewable energy technolo-
gies by 2020. To achieve this aim the plan recommends to introduce feed-in tariffs, backed by a regulatory framework
that allows existing biomass co-generation plants to be connected to the national grid through issuance of licenses for
large renewable energy plants, to encourage District Assemblies to provide alternative RE solutions to their off-grid
communities, to investigate innovative financial schemes, including capital subsidy arrangements and micro-financing, to
overcome the cost barrier to renewable energy. In the Plan, the Ghana Investment Promotion Council (GIPC) Investment
Code will be asked to make provisions for tax exemptions for renewable energy manufacturing. In addition, wind pow-
ered and solar energy generating sets, plants, machinery, equipment or parts for the establishment of manufacturing
facility should be exempt from import duty, VAT and excise duties. The Government should encourage Ghanaian indus-
trialists to partner with popular brand manufacturers to set up branches of production and assembly lines in the coun-
try and support decentralized RE systems which could include arranging concessionary credits for local RE dealers, and
to have public -private sector partnership in large-scale centralized power projects through shared costs. Many of these
recommendations have entered the RE draft bill that is currently under discussion.
In 2009, the Government facilitated the development of an operational manual for providing matching grants to support
renewable services by the private sector and supported the development of training and testing materials and testing
facilities for human resource development in Solar PV in Tamale Polytechnic and Kwame Nkrumah University of Science
and Technology (KNUST). Solar PV systems were installed in 75 rural health posts.
In 2010, the Government will continue to promote RET (specifically solar, wind and mini hydro), and technical training
for solar PV installation and maintenance. A government programme has been initiated to install Grid-connected PV
solar systems in schools, security service and health centres. In addition, the Government will implement grid-connected
wind systems, complete the construction of the Tsatsadu mini hydro power plant, rehabilitate grid-connected solar
system and develop a licensing and monitoring framework for the electricity industry. The setting up of a Biogas System
for the New Ankaful Maximum Security Prison is about to be completed. A similar version of the Biogas System is also
being constructed for several schools under the Ghana School Feeding Programme.
In order to promote and develop renewable energy systems, MoE sees the two-fold challenge of adopting appropriate
measures towards reducing the initial capital cost of RE systems (and identify areas where connection to the grid
cannot be economically justified), and of providing local technological support for production and maintenance of RE
systems, particularly in the case of imported solar photo-voltaic (PV) systems. The Minister for Energy, Dr. Joe Oteng-
Adjei is committed to speed up the process of establishing a Renewable Energy Law which would provide the legal basis
for creating an enabling environment for private participation and for better incorporating RE in the national energy
mix. The Ministry is strongly interested in attracting private sector investment in all aspects of Ghanas energy develop-
ment. Furthermore, the Government of Ghana stimulates the development of a local biofuels industry, especially from
agricultural wastes and Jatropha, supporting several small-scale initiatives, and promotes the construction of hybrid
solar/wind energy systems for households to reduce the over dependence on the national power grid.
Energy Efficiency
At the beginning of the 2000s, Ghana and South Africa had taken the lead in Africa in the implementation of energy
efficiency initiatives. Ghana early developed an Energy Efficiency Policy, an elaborate energy efficiency programme and
established institutions that promote Energy Efficiency in the country, the Ghana Energy Foundation.
2.1.1 Solar
Solar PV Market
The solar market is comparatively well developed due to the nature of the technology which allows small components
for installation and gradual increase, compared to other RET which are side-specific and large. Solar energy for electric-
ity generation has been used over the years. Public solar PV electrification projects were first implemented in the early
1990s. By 1991 there were about 335 solar PV installations in Ghana with total estimated power of about 160 kilo-
watts. From 1991 to 2003, the number of solar PV systems increased to 4,911 systems, which is mainly a result of the
National Electrification Scheme (NES) and the Ghana Poverty Reduction Strategy (GPRS I) aiming at expanding the use
of solar PV in rural electrification programmes. However, in the absence of maintenance, most solar projects have not
been sustainable. Another contributing factor to that stimulated solar PV installation was the energy crisis in 1997/1998
that spurred the creation of new businesses and increased competition in the market. The development of solar PV
installations is depicted in Figure 4. More than 90% of the Solar PV Systems are applied in Solar Home Systems. The
latest data from the Energy Commission quantify production of electricity through solar systems at 1.3 1.8 GWh
which translate into about 140 tonnes of oil equivalent. Figures have to be taken tentatively, since they date back 5
years and are likely to underestimate the installed capacity as of to date.
Figure 4: Trend of Solar PV Installations in Ghana
6000
4911
5000
4000 3500
3000 2530
2000
800 1000
700 510
1000 335
0 353
160
1991 1993 1998 2000 2003
Water Pumping 80
Telecommunication 63
Radio Transceivers 34
Rural Telephony 3
Total 4,911
2.1.2 Hydro
Large Hydro
The largest RE project under construction is the 400 MW Bui Dam which is financed by a USD 562 million loan from
Export-Import Bank of China. The Chinese constructor, Sinohydro, is well under way to finishing the project with elec-
tricity beginning to flow in December 2011.
In 2008, the Government also signed a memorandum of understanding with the Brazilian Government to provide a
credit line of USD 500 million for the construction of two hydro electric power plants at Juale and Pwalugu in the
Northern Region to generate 90 and 50 MW of power. In addition, generating capacity at Akosombo and Kpong plants
could be increased by a combined 160 MW (Table 5).
21 Dittmar, Cynthia (2008), Barriers and Drivers for the Deployment of RE Technologies in Developing Countries. Case Study on the Deployment of
Solar Water Pumps in Ghana.
22 Energy Commission, 2006.
2.1.3 Biogas
Gasification
Based on Ghanas geography and structure of the economy generating large quantities of wood wastes (20-30% of each
tree used) and structure of the Ghanaian economy generating large quantities of crop residues in the form of husk,
shells from coconut and oil palm, palm nut waste and corncobs, the potential to generate power from biomass in
Ghana is very high. Among the most encouraging technologies is the Combined Heat and Power co-generation based on
Biomass Integrated Gasification Combined Cycle. Up to 85-90% of the energy in the fuel can be utilized.
The most significant existing biomass co-generation plants are depicted in Table 6. According to FAO projections, bio-
mass production will increase at average annual growth rates of 2.2% and 1.8% during the periods 2010 2020, and
2020 2030, respectively.
2.1.4 Biofuel
The available plants suitable for the production of biofuels in Ghana include oil palm, coconut, groundnut, shea nut,
Jatropha, sugarcane and cassava. Today, Ghana places emphasis on the development of Jatropha as feedstock for bio-
diesel production. The production costs of biodiesel from Jatropha in Ghana are estimated at USD 460 per ton of oil
equivalent. Currently, in Ghana over twenty companies say they are investing in biofuels, some are into the cultivation
of Jatropha. In 2001, UNDP funded a plantation of some test plant species that can be used for biodiesel production.
The test revealed extraordinary results as the plants had a maturation period of only 12 months (compared to matura-
tion periods of around 3 years tested in Asian countries). In 2003, a land owner built the plant but the biodiesel
2.1.5 Wind
Wind power generation systems have been spotted in the country, but are yet to be captured in the electricity balance
due to lack of data. Favourable wind measurements exist at the coastline east of Accra with monthly average wind
speed between 4.2 m/s (in December/January) and 5.8 m/s (in September/October) at a height of 5 m. The availability
of sufficient wind is about 85%.
In the early stages of RET in Ghana, the Ghana Energy Foundation implemented demonstration projects in the country.
Wind technologies have been tested in Ghana in the form of modern wind energy plants, small wind power in hybrid
systems (generator or PV), and wind water pumps on small-scale for agricultural irrigation. A pilot wind pump has been
erected on the coastline of the Volta Region, Anloga and operates at wind speeds between 3 and 10 m/s. With a rotor
Tema Lube Oil Company M&T system, training USD 7,034 35% over project period (~
and power factor USD 10,000)
correction
Ghana Cylinder Manufactur- Installation of automatic Cedi 16.76 Electricity demand was reduced
ing Company Ltd. capacitor banks, power million (USD from 240 kV to 160 kV, saved
factor increased from 7,023) 38% of monthly electricity bill
0.68 to 0.82 in 1999 (annual savings: Cedi
Ghana Textile Printing improved boiler effi- Not available 6.5% of monthly electricity
Company Ltd. ciency, introduced consumption
energy monitoring
system, employee
education, power factor
correction
100
80
60
40
20
0
Concluding from the development of consumption patterns over time and income level suggest that fuel consumption of
households is following transits from wood to charcoal and gas, in both rural and urban areas, which is due to the
households desire and ability to buy more efficient and convenient fuel for cooking. In case desirable fuels are not
available or are difficult or expensive to get, households substitute them for more easily available fuels. Nevertheless,
Ghanaian households of all income groups are multiple fuel users. Income does not appear to influence the number of
fuels used, but it does influence the amount of fuel bought. Households with little or only irregular income buy fuels
only in small quantities, i.e. the smallest amount sold, e.g. two thirds of Ghanaian households purchase a maximum of
29 ESMAP, 2006.
Africa Green Business Market Assessment Ghana Page 25
300g of charcoal at a time, an amount estimated to prepare one meal. Affordability is also a barrier to ownership of
electric household appliances such as refrigerators, deep freezers, air conditioners and TV. The power rating of most
equipment is not high but misuse could lead to energy waste. The electrical cooker is the highest electrical energy
consumer in the home with a power rating of about 8,500 watts. The gas cooker is a cheaper and more efficient
alternative.30
Especially promising in this regard is Toyolas business model, encompassing the whole value chain of production,
marketing and sensitization, retailing, and financing upstream and downstream activities for providing energy efficient
cooking stoves to private households. On one side, suppliers of metal are pre-financed by Toyola through a microfinance
scheme. On the other side, Toyola also offers a microfinance credit facility to enable customers to spread the payment
for the stove over a longer period of time. Customers are sensitized for the product during a 3-month testing phase
and ensured a guarantee of one year. In addition, Toyola gives a commission of 5% to customers who successfully
market the product to neighbours. Accordingly, the companys turnover is increasing extremely fast and beyond expecta-
tions. Starting with 2,000 stoves in 2007, the company is now supplied 30,000 stoves in 2008 and is targeting
300,000 for 2010. The company is also intending to expand this business model to other countries (such as Liberia)
and to other market segments such as small solar applications to private end-users and small businesses.
Promotion of CFLs
Faced with a severe energy crisis in 2006/2007, the Government imported 6 million CFLs in 2007 that were distributed
nationwide by the Energy Foundation. The Foundation planned to claim CDM revenues but could not finish the applica-
tion process in time due to the urgency of the distribution. Today, the penetration rate of CFLs in Ghana is relatively
high, with incandescent lights accounting for approximately 3% of all lights. A private sector initiative intends to dis-
tribute another 10 million CFLs. CFLs are mostly imported from China and exempted from import duty and VAT. A
company based in Tema is also engaged in the local production of CFLs. Electricity consumption and unit costs for
incandescent lamps compared to CFLs are depicted in Table 8.
Table 8: Incandescent Lamps and CFLs in Comparison
Source: Ghana Energy Foundation, 2007; Note: The comparison is based on 12 hour use per day; 1 kWh = 583 Cedis; Cedis
10,000 = USD 1.04 as of Dec 31, 2006.
30 ESMAP, 2006.
Africa Green Business Market Assessment Ghana Page 26
3 Financing Green Businesses in Ghana
In this section, financing market for green businesses in Ghana is described detailing all of the different financing supply
possibilities either from the government, donors or other financial institutions. Next, financial needs of green businesses
are outlined and conclude with the gap between financing supply and demand, and recommendations on how to bridge
the difference.
36 A designated Apex bank will manage this program and the associated project funds targeting 10,000 households in remote rural areas. Accord-
ing to the operational model, an established dealer in PV systems will install a Solar-PV system in rural household and following verification by the
Apex bank of proper installation, the dealer will receive payment for the installation of the system and the required service that the dealer will
provide. The consumer will enter into an agreement for term financing of the subsidized capital cost of the system, with a participating rural bank.
The rural bank will receive the funds for the consumer credit program from the Apex bank.
37 Exchange rates as of Feb 14, 2010.
38 www.ghananewsagency.org/s_economics/r_12676 (21.02.2010).
Africa Green Business Market Assessment Ghana Page 29
The USD 5 million fund managed by the Natural Resource Management Component of the Community Based Rural
Development Projects (CBRDP) has been similarly accessible to Jatropha project developers since the crop helps prevent-
ing soil erosion and re-greening degraded lands.39
AREED
The African Rural Energy Enterprise Development (AREED) program was launched in Ghana in 2000. USD 497,986 have
been invested to provide seed capital for two green businesses per year. A list of invested enterprises is set out in
Table 9. The programme is well-known among clean business and SME communities in Ghana and has been primarily
focused on financing LPG and EE projects through KITE.
Table 9: Enterprises financed by AREED
AB Management Power Factor Correction USD 120,000 12% 5.5 years 2002
E+Co
E+Co is a public purpose investment company that empowers clean energy entrepreneurs in developing countries
through business development support and investment capital provided by FMO, Norfund, GTZ and USAID. The head
office is in the Netherlands but merely acts as a donor office. E+Co. served as the Fund Manager for the AREED
programme but has since become independent and can now be viewed as a competitor. E+Co has investments in 15
companies ranging from those active in solar, LPG, Biomass efficient cook stoves, totalling USD 2 million. Additionally,
E+Co provides a wholesale facility to an MFI. Loans range from USD 20,000 up to USD 2 million with a 6-9 month
grace period at an interest rate ranging between 8-10%. In additional to debt, E+Co will provide equity or a hybrid
structure and also provides enterprise development services to its clients to help with planning and networking.
40 As of January 2010, inflation (CPI) stood at 14.78%. The Bank of Ghana reduced its Policy Rate from 18 percent to 16 percent on February
16, 2010. Bank of Ghana, www.bog.gov.gh (accessed on February 14, 2010).
Africa Green Business Market Assessment Ghana Page 31
mechanisms used by the Grameen Foundation. Merchant Bank is building up capacities on carbon financing. In a pilot
scheme, a solar PV was installed as back-up for one of Merchants ATMs. The bank also finances RE initiatives within its
mortgage facility. According to clients, local banks find it easier to finance new buildings with 15 20% targeted for
RE generation equipment instead of financing solely RE.
On a national level, Ecobank seems to become the first mover to showcase commercial RE financing mechanisms. In
collaboration between KITE as a technical partner, Susu collectors and the Ecobank SME unit is envisaged to design an
end-user financing instrument. Ecobank has also expressed interest in financing companies in the industrial sector to
switch to gas as main energy source delivered through the WAPP gas pipeline. Ecobank uses a two-fold approach for
providing RE finance: (1) creating awareness about the existing benefits, and (2) providing financial assistance.
On a regional level, ECOWAS Bank for Investment and Development (EBID) provides finance to RE businesses in Ghana.
Following the 2008 UNCTAD-led international workshop in Accra on the development of a biofuels industry in West-
Africa, a common fund is to be set up by Indias Exim and EBID. The African Biofuel and Renewable Energy Fund aims
to boost biofuels production in 15 West African countries. India has pledged USD 250 million to the West African
Biofuels Fund. As a first step, EBID, in conjunction with the country's commercial banks and financial institutions,
provided USD 35 million for a Jatropha biodiesel project in Ghana targeting to plant Jatropha to cover about 1 million
hectares of idle lands in Ghana.41
These emerging initiatives need to be pushed forward, and should receive more promotion to develop in-house and
external awareness.
MFIs
Currently, there are no MFIs focused on providing RE/EE specific product neither for micro and small entrepreneurs nor
for consumers in the form of home improvement loans. Nevertheless, there have been several initiatives, among them:
1) Stanford project to distribute solar lighting products for USD 15 per unit on a lease basis combined with
public education on RE.
2) German University to provide Jatropha cooking stoves and oil at USD 90 per unit.
Both projects failed, however, since the initial costs of USD 15 and USD 90 per unit were still too high for the targeted
MFI clients. Clients were not interested in leasing the offered products since they would then be unable to service other
loan repayments simultaneously to the lease payment, and also because constant maintenance services could not be
provided.
As part of its agriculture portfolio, Pro Credit provides capital for solar crop drying activities used in food processing
and the timber industries. In the past, Pro Credit was providing loans for solar panels/home systems but it was decided
by management that these type loans represent consumer lending, an area which is not in Pro Credits development
mandate. The longest term Pro Credit extends is 5 years and for clients in the renewable energy sector, the term would
be a maximum of 3 years with an interest rate around 30%.
In general, MFIs face the challenge of lacking the credit information of clients. The Ghana Microfinance Network,
GHAMFIN, in collaboration with GTZ is working on developing a database to collect biometric information for preventing
multiple borrowing and providing more accurate data. Another project aims at introducing a mobile saving scheme for
MFIs. Since Ghana is dominantly an oral culture, clients tend to better accept voicing for new mobile services, such as
daily savings. GHAMFIN is now identifying potential partner MFIs and banks to launch a pilot. It is clear that more
work has to be done to realize co-financing with financial intermediaries.
41 UNCTAD (2009), SouthSouth and triangular cooperation in the biofuels sector: the African experience, The African Biofuel and Renewable
Energy Fund (2009), http://www.faber-abref.org/fichiers/Geneva-April-2009.pps
Africa Green Business Market Assessment Ghana Page 32
3.2 Green Business Demand for Financial Services
42 For purposes of this study the following definitions apply: A microloan is a loan ranging from USD 1 10,000 but can also be between USD
10,000 up to USD 25,000 depending on the sector. SME loans range between USD 25,000 and USD 5 million. Corporate loans/project finance are
transactions exceeding USD 5 million.
Africa Green Business Market Assessment Ghana Page 33
ment for the improved charcoal stove (ICS) such as Ahibenso is about three times that of the traditional charcoal stove,
the total expenditure per year is comparative to the simple firewood stove. Hence, when the payment for the appliance
is spread over longer periods so as to make the monthly payment amount small enough to be affordable for the poor
the switch to more efficient household appliances increase rapidly. Low-income households are often excluded from
normal credit facilities because they have no collateral and uncertain or irregular income. In instances where these
credit conditions were lowered or waved poor households did access modern energy and appliances. In South Africa,
furniture and appliance shops have credit and lay-by systems, which enable many poor households to acquire appliances.
The principal payments are relatively small and spread over a long maturity.43
Table 10: Costs for Cooking Devices
43 ESMAP, 2006.
Africa Green Business Market Assessment Ghana Page 34
Lack of Long-Term Capital
Financial institutions in Ghana are unable to access long-term capital at affordable rates and therefore are unable to
lend long term. Few who do lend medium to long term, are typically priced out of the market, particularly for new
sectors perceived as high risk.
The perceived payback period of more than 4 years for some energy projects such as hydropower is too long for
existing commercial finance provides.
Lack of Legal Framework and Subsidies
The RE law is still waiting for the approval of Parliament. Without the RE Law, the incentives for providing finance for
renewable energy and energy efficiency investments is low in Ghana with wide ranging constraints.
Moreover, the banks are not able to assess the utilitys capacity to purchase electricity at a determined price on a
regular basis. There is no insurance in case of default. This risk is well known as national utility companies in Africa
have already defaulted to pay on a regular basis.
As described briefly above, the provision of finance for renewable energy and energy efficiency investments is low in
Ghana with wide ranging constraints. It can be easily concluded that the impact of these barriers to accessing credit is
restricting growth in the RE and EE markets.
44 The on-going refurbishment of the Deutsche Bank headquarters will reduce electricity consumption and CO2 emissions by more than 50% and
water consumption by more than 40%, making it one of the most eco-friendly high-rise buildings in the world.
45 The ISO 14001:2004 enables an institution (1) to identify and control the environmental impact of its activities, products or services, (2) to
improve its environmental performance continually, and (3) to implement a systematic approach to setting environmental objectives and targets, to
achieving these and to demonstrating their achievement.
4.4.2 SME
Because Ghana has encouraged the development of SMEs through incubators and other donor led programmes, there are
opportunities amongst SMEs active in many RE and EE sectors such as solar, biogas, biomass, and on a large scale, ICS
and CFLs. Investment opportunities in the solar sector under micro-firms are all scalable. If the policy for incorporating
solar into the building code passes, the demand for solar solutions will increase from large private sector businesses as
well as from the public institutions. In Ghana, there are experienced SMEs with long standing track records such as
Biogas Technologies West Africa, which has been in existence for 13 years and looking for financing to scale up their
operations in Ghana and Africa as a whole. Businesses in the services and agricultural sector as well as public institu-
tions are immediate clients to target for biogas and could be partly financed by such institutions as Ecobank. Biomass
comprises the largest part of the national energy basket (76.1%) and annual production of wood residues from logging
and sawmills is estimated to be around 1.1 million tonnes pointing to a large potential for biomass cogeneration from
wood wastes and agriculture residues.
In terms of energy efficient opportunities, investing in Toyolas business model with the improved cooking stoves at
scale can also provide additional benefits by monetizing the CDM benefits. SMEs distributing CFLs is another opportunity.
Forthcoming policies by the ECOWAS Bank for Investment and Development to make CFLs in public institutions compul-
sory along with the Energy Commissions programme to create the financial incentives for consumers to replace incan-
descent bulbs with CFLs via cash coupons cashed in at partner banks is another opportunity in the EE sector.
A.A.B. Bkm Solar Wholesale supplier of alternative Mr. Thomas 233.208.235.670 thomasmanuk-
Enterprise solar energy appliances, air Manu Kwaku waku@yahoo.com
cooling systems, alternative homes
and buildings
A & A Gas EE LPG gas retailing Mr. Gilbert 0243-265619
Ventures Koomson
AB Management EE Local energy management firm, Energy Founda- 0244768413 alawson@ghanaef.org
& Agency Ltd local contract energy manager, tion (Mr.
power factor improvement through Andrew Law-
installation of capacitor banks son)
African Energy Solar/wind Wholesale supplier, exporter, 1.520.720.947.5 info@africanenergy.com
system sales, specialized retail
sales of solar electric and wind
energy power systems and com-
ponents, solar water pumping
systems, solar refrigeration
systems and solar controllers
Amo Gas, EE LPG gas retailing Mr. Amoateng 0244-762486
Abelenkpe
Anasset EE LPG gas retailing Mr. Seth 233.208.131.310 anasset@ghana.com
Nanemeh
Anuanom Indus- Biomass Processing Jatropha seeds to bio- Mr. Onua 233.216.670.16 anu-
trial Projects diesel Amoah (CEO) anom@internetghana.com
Arthur Energy RE/EE RE/EE Consultancy, Development Partners: 233.212.700.61; info@arthuradvisors.com
Advisors consultants of Capital Projects, Business Jabesh Amis- 233.217.722.48
Strategy and Finance, Operation sah-Arthur,
Modelling and Forecasting for Harriette
Energy Systems, Research, Assess- Amissah-Arthur,
ment and Advice, Utility Manage- Ruben Atekbe
ment, Company Structuring and (Investment
Institutional Reform, Contract Banker)
Administration and Project Imple-
mentation.
ASASE Biomass RE power and biogas projects in Mr. Jerry Bedu- 49.622.143.322.5 jbeduaddo@aol.com
Mankoadze and Sampa Addo 9,
49.622.141.186.1
Best Solar Solar Installation, maintenance of solar Idris Alabirah 233.712.2704, alababah@gmail.com
appliances Baba 233.244.223.516
Beta Construction Biomass Design and construction of biogas Mr. Nana Kofi 233.244.239.539; betaconst@yahoo.com;
Engineers Ltd.* plants Ntiamoah 233.214.041.86 kahenkorah@exite.com
Ahenkorah
Bio Diesel 1 Biomass Cultivation of Jatropha Mr. Kofi Marfu 233.243.536.778;
Ghana Ltd. (now (MD) 233.208.174.049
Biofuel Africa)
Bioce Fuel Farm Biomass Processing waste vegetable oil, Mr. Romanus 233.277.174.049 bioceff@yahoo.co.uk
Ghana Ltd. and palm oil, plantation develop- Gibson (CEO)
ment, briquettes and charcoal
briquettes
Biofuel Africa Biomass Jatropha cultivation for local Mr. Ove Martin 233.265.135.717 Ove@biofuel.no
Ltd. (Ghana) / consumption and export Kolnes
BioFuel Africa AS
(Norway) / Solar
Harvest AS
(Norway)
Biogas Technolo- Biomass Design, installation of biogas Mr. John Afari 233.224.461.959; info@btwal.com;
gies West Africa plants, import of biogas equip- Idan 233.272.724.040 info@biogasonline.com
Ltd.* ment
Bionic Palm Biomass Sustainable combined oil and food Ulrich B. 233.245.310.298 info@bionic-palm.com
plantations Riemann (MD)
Biosavanna Biomass Production of biofuel, electricity Mr. Seth Lokko 233.246.721.077 info@biosavanna.com
Energy Ltd. from biomass (CEO)
Clean Energy Biomass Retail sales, wholesale supplier, 233.244.288.326;
(GH) Ltd. importer, consulting and installa- 233.242.156.581
tion
Corona Solar Solar Design, installation, maintenance Harrison 234.806.523.838.
Energy of Solar PV, SHS, solar lighting Oladapo (CEO) 7
appliances, Nigerian solar electric-
ity provider, subsidiary of Solar
Energy Worldwide (UK)
Criterion Gold Solar Sales of solar PV systems and 233.212.272.56
River Enter- solar lighting
prise/Lilham Ent.
Ltd.
Danafco Engi- Solar Siemens PV products dealer 233.212.337.80
neering Ltd.
Dawig Energie Solar Dealer in solar applications David Tukuru 233.244.422.191 dawig_energie@yahoo.fr
DENG Limited* Solar Engineering services, RE power Mr. Frede 233.212.570.99 ; fbosteen@dengltd.com;
generation, control and transmis- Bosteen (CEO), 233.212.571.00; kkc@dengltd.com;
sion, manufacturer, retail sales, Mr. K.K. 233.212.337.79; info@dengltd.com
wholesale supplier, exporter, Cornelius 233.212.337.80;
importer, design and installation, (Administrative
maintenance and repair services Manager)
for solar electric (and hybrid)
power systems, SWP, solar light-
ing, research services, Solar
Training Center founded in 2005
DWA Dizengoff Solar Dealers in solar energy systems David Tukuru 233.212.218.31; moshe@dwa.gh.com;
Ghana Ltd. 233.212.118.31; info@dwa-ghana.com
233.244.422.191;
233.212.218.15
Jachfam Enter- EE LPG Filling Station Mr. Ben Eric 233.208.139.864; jachfam2003@yahoo.com
prise Tagoe (Super- 233.312.273.8
vising Manager)
Jatropha Africa Biomass Cultivation and processing of Ohene K. Akoto 233.207.497.594; sales@jatrophaafrica.com
Jatropha to biofuel (Director of 233.275.908.406
Operations),
Joseph Ofusu-
Aikens (Man-
ager for
Strategic
Planning)
Kalten Ltd. Solar Dealers in solar appliances Mr. Kwabena 233.216.602.22; kaltenltd@hotmail.com
Koranteng 233.208.128.183;
Asiamah 233.216.722.91
Kemay Technol- Solar Retail sales, wholesale supplier, Mr. Kenneth 233.243.212.81;
ogy importer of solar electric power Asamoah 233.246.113.28
systems and components, solar air
heating, solar tracking systems,
solar pool heating
Kevin Power Solar Manufacturing and export of 91.999.990.987.2; info@kevinsolutions.net;
Solutions Ltd. backup power systems, SWH, solar 91.999.997.498.3; sales@kevinsolutions.net;
lighting 91.972.000.205.2 export@kevinsolutions.net
Kludjeson Inter- Solar Solarex distributor 233.212.493.32
national Ltd.
Kwabenya Gas EE LPG gas retailing Mrs. Abena 233.244.378.979;
Plant Nyantekyewa 233.288.708.970.
MA TECH SOLAR Solar Sales of solar power systems, Mr. Michael 233.243.966.022;
(Gh) Ltd. power backup systems Appoh 233.249.140.533;
233.241.117.777;
233.271.117.777
Madina Junction EE LPG gas retailing Mr. Asafoah 233.215.107.06;
233.243.189.536
McBryce Consul- RE/EE RE/EE Consulting, project devel- Michael Kottoh 233.244.969.424
tancys consultants opment services, education and (Associate
training services, research services Consultant,
consultant on
the GEDAP
project)
Michikwam Gas EE LPG gas retailing Mr. Ntim-Adu 233.208.152.644
Nortra GmbH Solar Retail of off-grid solar systems, Alexander 49.4461.700301 bankoley@nortra.de;
esp. to schools and health facili- Bankoley biofuels@nortra.de
ties, installation, training courses (Technical
Manager)
Nykomb Energica RE/EE RE/EE Consultancy, energy plan- 233.244.325.852 info@energica.org
consultants ning and policy formulation,
training and facilitation, analysis
and modelling, project formula-
tion, management and evaluation
Pico Sol Solar Production, research, consultancy, Henry de 31.334.650.988 pico@picosol.nl
project realisation in solar for Gooijer (Project
schools, hospitals and local Manager)
communities, solar PV, SWP
Power Land Ltd. Solar Dealers in solar power and Mr. Lawrence 233.215.035.35, goldsola@k5online.com
backup systems Nuku 233.243.842.42;
233.212.801.83;
233.277.495.999;
233.277.455.157
Power World Solar Dealers, installation of solar power Mr. Andrew 233.212.351.54; andrewetwire@yahoo.com
and backup systems Kobina Etwire 233.208.499.98;
233.208.149.998
PTL Enterprise Solar, Retail sales, importer, system Dr. Christoph 233.214.185.31;
Ltd. Wind integrators, manufacturers repre- Kapp (MD) 233.204.218.532;
sentation, service providers for 233.268.243.297
solar PV systems, solar lighting,
wind turbines, LED lighting and
traffic lights, RE system batteries,
DC to AC power inverters
Ramboll Ghana RE/EE Danish waste-to-energy consul- Mr. Peter 233.212.415.47 peha@ramboll.dk;
consultants tancy: planning, design, tendering, Heymann nch@ramboll.dk
construction management and Andersen, Mr.
commissioning Nils Christian
Holm (Heads of
Waste-to-
Energy De-
partment)
Rich & Co. Gas EE LPG gas retailing Mr. Richard 233.242.230.562;
Agyemang-Duah 233.277.535.874
RKA EE Manufacture LPG stoves Mr. Vincent 233.244.941.895 vin-
Yankey (E+Co) cent.yankey@eandco.net
SARE Solar Dealers, installation of solar power Mr. Samuel 233.244.366.077; saresam@hotmail.com
and backup systems Mensah 233.217.700.46;
233.217.640.05
Scanfuel Ghana Biomass Cultivation of palm oil and Mr. Thor 233.245.291.609; th@scanfuel.com
Ltd. Jatropha, deliver off-grid solar Hesselberg 47.450.035.00
systems to schools and health (CEO)
facilities, installation and training
courses to local partners
Seli Technologies Solar, Retail sales, wholesale supplier, Senyo T. Dake 233.277.405.512; selitechnolo-
Wind importer of small wind turbines, 233.217.011.154; gies@yahoo.com
towers and structures, backup 233.701.115.4
power systems, solar PV, solar
systems and components, energy-
saving lighting and devices
Shacyn Interna- Solar, Dealer in solar PV, solar (hybrid) 233.246.698.909 sales@solarenergyghana.co
tional Ltd. Wind systems and components, solar DC m
fridges, solar systems for telecom
BTS stations, solar lighting, SWH,
SWP, solar billboards, wind
turbines, industrial/commercial
projects, solar pool heating, off-
grid systems, grid-tie systems,
solar air conditioners, solar
cathodic protection systems
Shanghai Roy Solar, Manufacturing, export, system 86.139.175.673.6 roysolarliu@yahoo.com.cn
Solar Co. Ltd. Wind design, installation of solar 7
lighting products, solar electric
power systems, and components,
SWP, DC To AC power inverters,
solar electric charge controllers,
wind turbines
Sjoberg Ghana Solar Manufacturing, wholesale supplier, Mr. Prosper 233.244.667.528 ph.governor@gmail.com
Ltd. exporter, consulting, installation, Governor
project development services,
architectural design services,
contractor services for energy
efficient homes and buildings,
solar thermal electric power
systems, packaged power systems,
solar lighting systems
Solar and Wind Solar, Business development and produc- Ed Bossman 233.217.682.87 ed-
Energy (GH) Ltd. Wind tion of solar photoelectric energy Yeboah bossman@edconsultants.co
and wind turbines, new energy .uk
sources, and energy saving, urban
and rural lighting projects
Solar Electric Solar Sales of solar electric lighting and 233.217.010.182; micky_mens@yahoo.com;
Power Company power systems 01.772.220.661.5 africa@sepconet.com
(SEPCO)
Solar Electric Solar Sales of solar PV system integra- 233.223.046.23; info@sunrisesolarsolutionsl
Systems tors 233.244.255.017; td.com
233.271.349.668;
44.208.803.280.2
Solar Light Solar Design, system packaging, assem- Ms. Esther 233.212.343.49, info@solar-light.com;
Company Ltd.* bly, retail sales, service, im- Ofori, Mr. 233.212.456.75 solar@okyeame.net
port/export, engineering, installa- Mawuli Tse
tion and packaging of solar (MD),
electrical systems for buildings, Benedette
telecom and health appliances, Naabeh (Ad-
Sustainworld RE/EE RE/EE consultants, case study on Evans Mensah 233.275.361.988 evanshervie@yahoo.com
Consultant* consultants Valley View University (application Hervie
of biogas)
Thaljeb Gas EE LPG gas retailing Mrs. Comfort 233.244.382.049
Quansah
Tom Oil and Fat Biomass Cultivation of Jatropha and oil Mr. Akwasi 233.275.623.445; tradexgh@gmail.com;
Processing Ltd. palm for biodiesel Anim Dankwa 233.244.582.027 radexgh@yahoo.com;
(CEO) tomoilgh@yahoo.com;
aadankwah@yahoo.com
Topsun Energy Solar Supplier, manufacturer of solar Ms. Binal 91.792.328.880.4 market-
Ltd. lighting systems, solar telecom Sharma (Mar- ing@topsunenergy.com
systems, SWP, solar air cooler, keting), Mr.
solar refrigerator Ashit Chandaria
ToughStuff Solar Dealer in flexible solar PV strips, Nick Sowden 261.331.276.341 info@ToughStuffOnline.org
rechargeable LED lamps, mobile (US Director,
phone connector cables Business
Development)
Toyola Energy Solar, ICS Production and distribution of Mr. Suraj 233.249.857.141 toyolaenergylt@yahoo.com
Ltd. energy efficient biomass cook- Wahab, Mr.
stoves and rural solar products Ernest Kyei
Tragimacs Biomass Processing of biodiesel for Tema Mr. Issah 233.208.135.861; hassi@usa.com;
Sunflower Ghana Oil Refinery Sulemana (CEO) 233.212.588.11; info@tragrimacs.com
Ltd. 233.222.511.29;
233.222.511.30;
233.208.135.861
Translegacy EE LPG gas stoves manufacture Mr. Vincent 233.244.941.895 vin-
Ventures Ltd. Yankey (E+Co) cent.yankey@eandco.net
UNIRECO Ltd., Biomass Biodiesel production from sunflow-
Accra ers
United Solar & Solar, Retail sales, importer of solar PV, 233.243.654.30
Wind Power (Gh) Wind small wind turbines, small wind
Ltd. energy towers and structures,
tubular skylights
Wienco (Ghana) Biomass Design and construction of biogas Mr. Dela 233.244.338.355; dela@wienco.com;
Ltd. latrine for University College of Nyarko, Mr. 233.544.331.198; wienco@wienco.com
Education, Winneba Abdellah Nii- 233.217.722.51;
Commey 233.217.764.47
Wilkins Engineer- Solar Manufacturing, design, installation, Mr. Omane 233.244.315.634; wilkins@wikineng.com;
ing maintenance and assembling of Frimpong 233.212.356.71; sales@wilkins-eng.com;
solar systems (President of 233.275.001.111 wil-
AGSI); Mr. kins@africaonline.com.gh;
Boateng Omanef@idngh.com
(Marketing)
WISE Energy Solar Dealer in SHS, portable electrifica- Mr. Richard 233.214.031.35; richarku@hotmail.com;
tion, SWP, solar lighting and Collins Arku 233.244.703.310; wisenergy@ghana.com;
backup systems, owned by SARE (General 233.208.147.775; info@wise-energy.com
Ltd from Ghana and the Dutch Manager) 233.214.031.35
company Stroomwerk Energy BV
(SWE)
* Business interviewed
Financial institutions
Ghana Commercial Bank (GCB)* Commercial Bank, eCare Mr. Justice Gaveh 0244-266282 jgaveh@gcb.com.gh
Project
GHAMFIN* Microfinance Network Dr. David Andah 0217-69961 mfinet@ghana.com
ProCredit SLC Ghana* Savings and Loans Mr. Shadrach Ellen- 0243-686405 s.allen-koufie@procredit.com.gh
Company Ltd. Koufie
Government institutions
Industry Bodies
Donors /NGO/Research
The Energy Centre, KNUST* Research Prof. Abeeku Brew- 0246590698 (Prof. abeeku@brewhammond.com
Hammond, Prof. Akuffo Abeeku)
Annex 2
Renewable Energy Project Profiles
RE/EE E+Co West Investment Fund to invest USD 12 million E+Co, GEEREF 76 clean energy 2007 -
Africa Modern in clean energy SMEs SMEs in Ghana, 2009
Energy Fund Mali and Senegal
Effects of USD 12 million Fund: 3 million
people to get access to energy, 2 million
tons of CO2 offset (annually), third party
mobilization: USD 120 million
RE Renewable Energy Prepare RE policy and regulatory frame- Renewable Energy Regulatory Budget:
Policy for Climate work for Ghana, draft RE Law & Energy Effi- EUR
Change Mitigation ciency Partner- 92,200
Timely analysis of RE resources, data and
ship (REED),
review of plans through geographic
Implementing
information system (GIS) leading to more
agency: Energy
accurate techno-economic analysis that
Commission
will result in realistic cost-benefit projec-
tions
Develop tools for decision making to
stimulate policy initiatives designed to
attract public and private investment in
the RE sector, and to shorten the time
required to take an investment decision
through an independent confirmation of
the RE source
RE Bundling Small Assessment of practicalities, costs, benefits IT Power Private sector 2001 -
Scale Energy and framework requirement for small- developers, 2002
Projects for Clean scale RE and EE projects for CDM, case organizations,
Development studies bankers and
Mechanism (CDM) investors
RE Knowledge Create a digital knowledge recourse base World Bank Private sector 2001 -
Networks for on sustainable energy, provide statistics Regional Pro- developers, policy 2002
Sustainable on energy production and use and gramme for the makers, research-
Energy in Africa performance indicators for energy institu- Traditional ers
Project (KNSEA) tions Energy Sector
(RPTES) Local
partner: KITE
RE Renewable Energy Evaluation of Ghanas experience in the DANIDA in Policy makers 1999 -
Technologies development, utilization and promotion of partnership with and RE entrepre- 2001
(RETs) Project RETs: barriers and opportunities, policy UNEP neurs
recommendations,
EE: charcoal and firewood production,
cooking devices,
RE: productivity and use of existing bio-
energy resources (esp. biomass), pro-
grammes of forest regeneration and
afforestation.
Institutional Jan 09- 650,000 Target Strengthen capacities among key institu- EPA (Mr.
support to Dec 09 resource tions; William
integrate Climate assignment Harmonize policies and practices to man- Agyemang-
Change adapta- from the age climate change and disaster risks; Bonsu),
tion and Disaster core Prepare Ghanaian delegates for interna- NADMO (Mrs.
Risk Reduction (TRAC) tional conferences on climate change. Eunice Osae)
into national
development
plans
Expanding Access Jan 09- 100,000 TRAC Develop a District Sustainable Energy New Energy
to Energy Ser- Dec 09 Utilization Plan for Northern Ghana, en- (Mr. Amadu
vices for the poor force regulations at local level for the de- Mahama)
velopment of the LPG sector
Develop knowledge and effectiveness in the
national/district energy plans and pro-
grammes
Up-scaling strategies for delivering rural
energy services
Enabling Activities Jan 06- 405,000 GEF Continuation of national communication EPA (Mr.
for Ghanas 2nd Dec 09 (1996-2000) and enabling activities phase William
National Commu- II (2000-2002); Agyemang-
nication to the Strengthen capacities for implementing the Bonsu)
UNFCCC UNFCCC;
Addresses data gaps and enhance aware-
ness
Finalization of June 09- 150,000 UNEP-UNDP Finalizing the zero draft National Climate EPA (Mr.
the National Dec 09 (Government Change Adaptation Strategy William
Climate Change of Denmark) Agyemang-
Adaptation Bonsu)
Strategy
Establishing an July 09- 475,000 Global Merge all existing management structures EPA (Mr.
Effective and June 12 Environ-ment at national level into one structure; William
Sustainable Facility Provide support to five pilot districts, in Agyemang-
Structure for (GEF) order to build national level capacity; Bonsu)
Implementing Increased efficiency will attract additional
Multilateral investors to support Ghana in meeting Rio
Environment Convention obligations.
Agreements
Climate Change July 09- 2,580,000 RBA (Gov- Promote systemic change for a more EPA (Mr.
Adaptation June 12 ernment of integrated and holistic approach to climate William
Programme Japan) change adaptation; Agyemang-
Mainstream pro-poor and gender sensitive Bonsu)
climate change adaptation into its national
and sub-national development processes;
Leverage additional adaptation funding;
Improve observation and early warning
systems
Integrating Jan 10- 1,718,182 GEF Strengthen technical capacities to manage EPA (Mr.
climate change Dec 12 climate change-resilient health risks; William
into the man- Mainstreamed risk into decision-making at Agyemang-
agement of local and national health policy levels; Bonsu)
priority health Information management and effective
World Bank
Project Approval Closing Date Project Cost Financier Borrower WB Contact
Date (USD)
One Child One 30 Dec 2008 29 April 2010 240,000 Grant Trust Funds Solux E.V. Dana Rysank-
Solar Light ova
Solar PV Systems 10 Oct 2008 31 Dec 2012 4.35 million Global Partner- Government of Richard H.
to Increase Access Grant ship On Ghana Hosier
to Electricity Output-Based
Services in Ghana Aid
Ghana Rural 26 Jul 2007 30 Nov 2012 5.5 million Global Envi- Government of Sunil W.
Energy Access47 Grant ronment Ghana Mathrani
Facility (GEF)
Ghana: Energy 26 Jul 2007 30 Nov 2012 210.55 million Consortium Government of Sunil W.
Development and of which 90 Ghana Mathrani
Access Project million IDA
loan
47 Including Contract on Preparation of RE Policy and Regulatory Framework and RE Laws for Ghana, signed 2 Oct. 2008 with PWC Gh Ltd.
Africa Green Business Market Assessment Ghana Page 2
Annex
Annex 5
GEDAP*
* The Ghana Energy Development and Access Project (July 2007 November 2012).
* Source: UN-ENERGY Demonstration Study (2006), Assessing Policy Options for Increasing the Use of Renewable Energy for Sustainable Develop-
ment. Modelling Energy Scenarios for Ghana.
* Source: UN-ENERGY Demonstration Study (2006), Assessing Policy Options for Increasing the Use of Renewable Energy for Sustainable Develop-
ment. Modelling Energy Scenarios for Ghana.
Source: UN-ENERGY Demonstration Study (2006), Assessing Policy Options for Increasing the Use of Renewable Energy for Sustainable Development.
Modelling Energy Scenarios for Ghana.